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GSM Lecture 4Management > Global Strategic Management > Internal environment > Resources and capabilities > Distinctive capabilities > Value chain > Value chain illustrated > Value system
Value systemThe value chain observes the difference between firms, such as design and manufacturing, marketing and sales, or manufacturing and marketing. In order to select an appropriate value chain, a firm must understand the nature of the value system within which it operates. The Value system includes a firm's value chain and those of all the companies connected to this firm's operations, either upstream (closer to the supplier) or downstream (closer to the customer) From this the firm can choose which activities in the value chain to focus upon and which to form external relationships. For example, this is an example of a value system (Fig.2):
Corporate culture and structure
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